Botswana Infrastructure Report

About This Report

Abstract:

� Business Monitor International Ltd Page -- key risk to growth prospects. This has certainly been an issue over the last few years as demand for Botswana s diamonds in Europe and North America remains sluggish and construction industry growth has slumped. ...This has certainly been an issue over the last few years as demand for Botswana s diamonds in Europe and North America remains sluggish and construction industry growth has slumped. However, two factors will lead to an up-tick in investment in Botswana s mining sector, with demand for related infrastructure to follow suit: the government s commitment to the development of non- core mineral mining and the draw of Botswana s relatively stable business environment for risk-averse investors. In response to the lacklustre demand for diamonds, the government is keen to reduce reliance on the sector for revenue. ...It is one of the least corrupt countries in Africa, crime rates are low, it is well governed and lacks capital controls and other restrictions. Moreover, the government will strive to pursue policies that make the country s mining sector as competitive as possible, including low taxation and streamlined licensing procedures.

...We expect the construction industry real growth rate to jump in ---- to -.- and average -.- over our ---year forecast period to ---- as government stimulus plans and a recovery in the mining sector add to industry value. A major target of government infrastructure development efforts will be the power sector as inadequate capacity has been a major drag on the economy in the last few years. A contract has been awarded to expand the Morupule B power plant from ---MW to ---MW and plans are under way for a further expansion to -,---MW. Growth in the country s critical mining sector will be supported by strong government support, expansion into commodities other than diamonds and heightened interest from investors seeking a risk-free business environment in Southern Africa. Additionally we expect more investment in Botswana s water infrastructure as a drought has led to severe water scarcity. ...Additionally we expect more investment in Botswana s water infrastructure as a drought has led to severe water scarcity. The largest work currently in planning is a USD-.-bn water pipeline that will bring water from the Zambezi River to southern Botswana.

...We maintain our positive outlook for Botswana s construction industry in ----, which we expect to post -.- real growth for the year. This is a considerable increase from ---- - where real growth reached only -.- - as the industry was hampered by poor water and electricity supply. ...

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